METALS-London copper edges up on Anglo-Teck merger deal, supply concerns

By Lucas Liew

Sept 10 (Reuters) - Copper prices in London inched higher on Wednesday, buoyed by a landmark planned merger between Anglo American and Teck Resources, and ongoing supply concerns following global mine disruptions.

Three-month copper on the London Metal Exchange CMCU3 edged up 0.08% to $9,922 per metric ton by 0230 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.05% to 79,670 yuan ($11,179.09) a ton.

On Tuesday, London-listed miner Anglo American AAL.L and Canada's Teck Resources TECKb.TO announced plans to merge, creating the world's fifth-largest copper company and marking the sector's second-largest M&A transaction to date, a big bet on copper by Anglo.

Analysts from ANZ noted that recent disruptions at major mines may further tighten the copper market, which is already facing a shortage of feedstock.

Freeport-McMoRan FCX.N announced on Tuesday a temporary halt on mining in Indonesia's major Grasberg mine after a large flow of wet materials blocked access to parts of the underground mine, restricting evacuation routes for seven workers.

Meanwhile, China's new bank loan issuance in August is expected to have increased, a Reuters poll showed on Tuesday, bouncing back from a shock contraction in the previous month.

Manufacturing activity had declined for a fifth straight month in August, suggesting producers are awaiting further clarity on a trade deal with the U.S. while domestic demand remains sluggish.

Elsewhere, China Zinc Smelters Purchasing Team (CZSPT) set processing fees for cargoes imported by the end of the fourth quarter at $120-140 a dry metric ton, versus $80-100 for the third quarter, state-backed research house Antaike said late on Tuesday.

LME zinc CMZN3 gained 0.23%, while SHFE zinc SZNcv1 dipped 0.18%.

Nickel CMNI3 edged up 0.07%, and tin CMSN3 rose 0.66%, while aluminium CMAL3 eased 0.06%, and lead CMPB3 lost 0.2%.

SHFE aluminium SAFcv1 eased 0.02%, nickel SNIcv1 lost 0.44%, and lead SPBcv1 decreased 0.53%, while tin SSNcv1 edged up 0.01%.

For the top stories in metals and other news, click

TOP/MTL or MET/L

DATA/EVENTS (GMT)
1230 US PPI Machine Manuf'ing Aug

($1 = 7.1267 Chinese yuan)

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX